Asset Allocation | Risk Threshold

Asset allocation has to do with what ASST classes you choose to include in your investment portfolio. Each asset class has its own set of risks and potential rewards. The basic strategy of sound investment planning begins with asset allocation.

Asset classes include stocks, bonds, cash, treasury bills, products and money markets. They also include derivatives such as futures and options. You may even consider mutual funds, index funds and ETFs as a type of asset class, although most fall within populations.

Bonds, treasury bills, money markets, liquidity USD and gold are your investments safer. These rates are lower risk but also lower returns. riskier investments, but those with a high yield potential are derivatives such as futures and options.

Stocks are somewhere in between, while the entire spectrum of risk within the same actions. Small cap stocks as more risky than Large Cap Stocks small cap But what are the best opportunities for rapid growth.

Each asset class has a unique set of risks and rewards. Want to start here to discover how much of your portfolio you want to devote to each.